DOF: TRAIN Law not the primary cause of five-year high inflation

(File photo)

Metro Manila (CNN Philippines, May 30) — The Tax Reform for Acceleration and Inclusion (TRAIN) Law should not ultimately be blamed for the rise of consumer prices, Finance Assistant Secretary Paola Alvarez asserted on Tuesday.

Alvarez attributed the recent oil price hike to the rising world oil prices and the weakness of the peso. But she said the government is now in talks with members of Organization of the Petroleum Exporting Countries (OPEC), as well as Russia, to supply the country with affordable oil.

Peso depreciation is not also entirely bad for the economy, she said. “The OFW remittances to the Philippines will actually give more spending power to the beneficiaries because of the change in the exchange rate,” Alvarez said.

Alvarez said moderate inflation is normal in a growing economy in the Philippines. She also cautioned that some businesses are using the TRAIN Law as an excuse to commit profiteering.

It can be recalled that transport network company Grab Philippines filed a fare hike petition in January, citing the TRAIN Law as a reason for the increased charges. The Land Transportation Franchising and Regulatory Board has asked Grab to amend its petition for transparency.